Weakness in Malakoff share price opportunity to accumulate, says PublicInvest Research

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KUALA LUMPUR (May 18): PublicInvest Research has maintained its “Outperform” rating on Malakoff Corporation Bhd with a target price of RM2.18 and said the current weakness in Malakoff’s share price provides an opportunity for investors to accumulate.

In a note today, the research house said Malakoff’s shares performance was lukewarm on the first day of its relisting on Bursa Malaysia last Friday due to heavy selling
pressure, which was contrary to house expectations.

“Management issued a press statement last Friday evening denying that the  group was keen in acquiring power assets of Edra Global Energy.  

“We believe the knee jerk reaction is temporary and continue
to like Malakoff based on its IPP business model which provides the Group with consistent and sustainable revenue streams of
income throughout the PPA concession period with fuel cost-pass through features.

“We therefore reiterate our Outperform  call on Malakoff with a target price of RM2.18. The current weakness in Malakoff’s share price provides an opportunity for investors to  accumulate,” it said.